March Air Freezing Wall Street, But Market Boils Over | Market Moovers
Morning Mooers, it is Thursday, March 21, the air is freezing in Jersey City, but the market is boiling after the Fed decision to keep things the same.
RECAP
Investors watched as Fed President Jerome Powell unveiled a median target Federal Funds rate of 4.6% by year end.
The $S&P 500 Index climbed past a record 0.54% after closing at its 19th record close this year. The $Dow Jones Industrial Average climbed 0.66% after a record close of its own, and the $Nasdaq Composite Index climbed 0.72%, to an all-time high.
If the market loves anything, it's predictability.
BREAKING
The Justice Department sued $Apple (AAPL.US)$ on Thursday, alleging the tech giant blocked software developers and mobile gaming companies from offering better options on the iPhone, resulting in higher prices for consumers. According to WSJ.
The government's antitrust complaint, filed in a New Jersey federal court, alleges Apple used its control of the iPhone to prevent competitors from offering innovative services such as digital wallets and limited the functionality of hardware products that compete with Apple's own devices. The suit also claims that Apple makes it difficult for users to switch to devices that don't use Apple's operating system, such as Android smartphones.
"Consumers should not have to pay higher prices because companies violate the antitrust laws," Attorney General Merrick Garland said in a statement.
MACRO
Wednesday, the market climbed after the Federal Open Market Committee decided rates should remain unchanged at 5.25% - 5.5%. Federal Reserve President Jerome Powell held a press conference to describe the dot plot projection of where rates will be at the end of the year.
Powell said, "If the economy evolves going forward, the appropriate level of the federal funds rate will be 4.6% at the end of this year.
The dot plot shows the FOMC member's prediction for the appropriate range to target for the Federal Funds Rate. The dot plot shows median rates coming down to 4.6% this year and down to 2.5% by 2026, and Powell said rates were unlikely to return to the pre-pandemic 0% rate.
COMPANIES
$Micron Technologyclimbed 14% as the computing giant posted earnings that beat expectations Wednesday.
$Guess climbed 20% as the luxury retailer posted earnings that beat expectations during a down time for luxury retail.
$Five Below fell 12% after the retailer posting earnings Wednesday did not impress.
Mooers said yesterday they were watching the Rate decision along with the moomoo live broadcast, and some users said they had expected rates to actually come down.
When do you think rates will come down mooers? Answer below and I will feature your comment in the next post.
Source: Bloomberg, Dow Jones, CNBC, Reuters
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Kevin Travers
Moomoo News and Community Manager
Moo moo News and Community Manager, NJ Office.
Fmr CNBC contributor, reporter/investor/trader
Posts do not represent mm
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RDK79 : “Top U.S. asset manager Vanguard doesn’t believe the Fed will cut interest rates this year”
Have to post something that drives useless debate. :)
Kevin Travers OP RDK79 : aint that always the media goal![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Ray P : $boil still falling![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Josh Spence- AO Kevin Travers OP : 100%. best time to get into tmf triple leverage treasuries or any of those is 90 days before the first rate cut (historically speaking) . long calls on that towards the middle of the year-q3 in that time period i think is best timing to jump on long call options not set to expire before feb or march 2025. there will be a ton made on these. but of course any media is going to porttray the opposite leaving the retail investors holding the bag
Kevin Travers OP Josh Spence- AO : I would love to learn more about this, im new to leverage trading, we should set up an interview!